ATO refused access to Rinehart documents

The Australian Taxation Office has been refused access to court documents in the multibillion-dollar trust fund battle between Australia's richest person, Gina Rinehart, and her children.

The tax office in Western Australia applied in the NSW Supreme Court in November to view several documents, including tax advice given by accounting firm PricewaterhouseCoopers in relation to the bitter family battle.

But the ATO repeatedly failed to be represented in court and didn't specify the documents it wished to view from the court file, which is more than 30 large folders, Justice Paul Brereton said in a judgment handed down on Monday.

Two of Ms Rinehart's children, John Hancock and Bianca Rinehart, allege their mother acted "deceitfully" and with "gross dishonesty" in her dealings with the trust, set up in 1988 by her father, Lang Hancock, with her children as the beneficiaries.

The pair were previously supported by their sister Hope Welker, but she withdrew from the case.

Ms Rinehart, who is supported by her youngest daughter Ginia, has denied the claims but agreed to bow out as trustee last year.

Advertisement

Every proposal so far for a replacement trustee - including Bianca Rinehart, Mr Hancock and independent trustees - has been knocked out of contention during lengthy court proceedings.

The court heard Ms Rinehart contacted her children in early September 2011, days before Ginia turned 25, when the trust was due to vest.

Ms Rinehart had changed the vesting date to 2068, warning her children the vesting of the trust on September 6 would have rendered them liable for substantial capital gains tax and lead to their bankruptcy.

Mr Hancock and Bianca Rinehart allege this was an attempt to mislead them.

The ATO requested access to a number of documents including "documents which refer to the consideration of taxation consequences of extending the vesting date of the trust and/or the vesting of the trust, including any tax advice provided by PricewaterhouseCoopers".

The tax office offered to "arrange for our NSW colleagues to attend the court and go through the documents to save the time and effort that would otherwise be required of (court) staff".

But Justice Brereton said the court would still need to peruse each document in the file to facilitate such a request.

"This is not the court's function," he said.

The judge said he would consider granting access if the ATO applied to inspect "specific pleadings, affidavits, transcripts or exhibits".

It would also need to be represented in court for such an application, he added.